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Fiscal changes regarding VAT

In this issue:

Fiscal changes regarding VAT introduced by the Government Ordinance no. 6/2020

  • Quick Fixes implementation
  • Change of threshold for written notifications for VAT registered and non-registered taxable persons with the deadline of submission on 25 February

New provisions regarding Call-off stocks and the conditions for applying this regime

The transfer of goods by a taxable person which are part of its economic activity to another Member State within the call-off stock regime is not deemed as a supply of goods.

The conditions to be fulfilled for the call-off stock regime to exist were defined are as follows:

  • The goods are dispatched / transported by a taxable person or by a third party on its behalf, to another Member State with the view that the respective goods are being supplied there, at a later stage and after arrival, to another taxable person who is entitled to obtain the ownership over those goods in accordance with an agreement existent between both taxable persons;
  • The taxable person who dispatches the goods has not established its economic activity, nor does it have a fixed establishment in the Member State in which the goods are dispatched / transported;
  • The taxable person to whom the goods are intended to be supplied is VAT registered in the Member State to which the goods are dispatched, and its identity and VAT ID are known by the supplier at the moment when the goods are dispatched;
  • The taxable person dispatching / transporting the goods records the transfer of the goods in the register mentioned under the art. 321 par (6), in the case in which the goods are transported or dispatched from Romania to another member state, or, in case where the goods are transported or dispatched from another member state to Romania, in the related register mentioned in the respective member state legislation and includes the identity of the taxable person acquiring the goods, and  the VAT identification assigned to him by the member state number  to which the goods are dispatched or transported in the recapitulative statement mentioned under the art 325 or the correspondent article in the legislation of the other member state from which the goods are dispatched or transported.

If the above-mentioned conditions are met, at the time of the transfer the following transactions are considered to be performed:

- An intra-community supply of goods in the Member State of dispatch;

- An intra-community acquisition of goods in the Member State of arrival.


A deadline of 12 month was set for the supply of goods, from the moment of their arrival in the Member State to which they were dispatched. In case the deadline is exceeded, the simplification is no longer applicable, with certain exceptions.

It is possible to replace the beneficiary and maintain the simplification, under certain conditions.

The VAT treatment applicable in case the goods are shipped to another Member State than the one of origin or in case of destruction of goods is clarified.


Chain supplies

The new provisions offer guidance on the allocation of the transport in case of chain supplies of goods.

In case the same goods are supplied successively, and those goods are dispatched / transported from a Member State to another Member State directly from the first supplier to the last customer in the chain, the transport is ascribed to the supply made to the intermediary operator.

An intermediary operator means a supplier within the chain, other than the first supplier.


Changes regarding the Intra-Community supplies of goods and the conditions for applying the related VAT exemption

The definition of exempt Intra-Community supplies of goods was amended as follows: intra-Community supplies of goods are those performed for a taxable person or a legal non-taxable person acting as such in a Member State other than the one in which the dispatch / transport of goods begins, which communicates to the supplier a valid VAT ID.

The VAT exemption in case of intra-community supplies of goods does not apply if the transaction was not properly declared in the recapitulative statement.


The threshold for the notification regarding the transactions performed during the previous year has changed

The threshold related to the submission of notifications for VAT registered and non-registered taxable persons, having the submission deadline on 25 February, was amended. The threshold was increased from RON 220,000 to RON 300,000 and the obligation for submitting such notification was suspended until 31 December 2022.

Please contact our consultants for more information regarding these new provisions and their applicability for your business.

Also, we can support you with a customized point of view on how to fulfill the legal obligations which will arise once these provisions enter into force.

For more details, please see Official Gazette no. 72/31 January 2020 or you can contact us directly.

Prepared by:
Costin Manta – Director, Indirect Tax
For additional information, please contact:
Alex Milcev – Partner, Tax & Law Leader Romania
Ernst & Young SRL
Bucharest Tower Center Building,
22nd Floor, 15-17 Ion Mihalache Blvd.,
Sector 1, 011171, Bucharest, Romania
Tel: (40-21) 402 4000, Fax: (40-21) 310 7124
Email: office@ro.ey.com
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